Class 

Definition

In the system, each security is a class. The class data includes all the structure characteristics of a security. It includes search terms (short and long names, secondary indexes, rating, classification), basic data (issue details, structure), conditions, notice data, exchanges, user data and regulatory reporting, (custody type, securities account statistics, tax treatment etc.).

Since you create transactions and manage your positions in the Transaction Manager on the basis of product types, you assign each class to a product type. You define product types in Customizing for the Securities and Listed Derivatives areas by choosing Define Product Types and assign them to product categories which are predefined in the system. You can create more than one product type for each product category.

The various product types are indicated by specific characteristics. When you enter master data, the system provides you with different entry screens for specific product types. This makes it easier for you to enter product type data and avoid inconsistencies.

In Customizing for Securities, choose Define Product Types and, for each product type, use the field selection function to define the specific entry fields you want to mark as optional, required or display fields, and the fields you want to suppress.

Use

You can represent the following security types using the product categories delivered with the system:

A) Bonds:

We differentiate here according to the interest calculation type:

·         Fixed-interest bonds

·         Variable-rate bonds (floating rate notes)

·         Non-interest bearing bonds (zero bonds)

We differentiate here according to the currency:

·         Local currency bonds

·         Foreign currency bonds

·         Dual currency bonds

We differentiate here according to the repayment type:

·         Installment bonds

·         Bullet bonds

·         Perpetual bonds

·         Drawable bonds

Special bonds:

·         Convertible bonds

·         Warrant bonds (cum, ex)

·         Index-linked bonds

B) Warrants

·         Equity warrants

·         Bond warrants

·         Index warrants

·         Currency warrants

C) Stocks

Fully and partially paid stocks

Common stocks and preference stocks

D) Subscription rights

E) Investment certificates

F) Shareholdings

G) Participation certificates

H) Futures

·         Securities futures

·         Interest futures

·         Index futures

K) Listed options

·         Stock options

·         Index futures

·         Future options

Integration

·         In order to process transactions, you must first enter certain master data. This includes, for example:

-         Business partner data (issuer, counterparty)

-         Class data

-         Securities account data / futures account data

-         Position indicators

·         When you create an order, the system calls up the data which has already been defined and you add the specific transaction data (such as the amount or price of a stock purchased).

·         The system uses the class data (in particular the entries for the conditions of the class) and the specific transaction entries (such as the nominal value, price) to generate the cash flow.

·         Class data can also be used for evaluation purposes, for example, when you create lists or when you determine an account assignment reference automatically.

·         From the class data, you can branch to the relevant business partner's Issuer data. To do this, choose Environment ® Display issuer.

·         A class have can one of three statuses: active, inactive and obsolete.
When you enter the master data for a class in the system, you first have the option of leaving it in the inactive status until you have finished entering all the data.  Inactive classes cannot be purchased. 
You select the obsolete status for classes that are no longer used and that are not to be selected for evaluation reports.

See also:

The following document on the class gives you an overview of how the documentation is structured and includes links to all the chapters: Class